(i) Explain the difference between the headline fiscal deficit and the primary fiscal deficit. Which one will be the biggest figure? Explain your reasoning. (ii) Is it possible for a country to have a headline fiscal deficit and a primary fiscal surplus? Eyplain your reasoning

Q: Explain the concept of Fiscal Policy

A: Definition of Fiscal Policy: Fiscal policy is a policy of government to control the economy through…

Q: Compare expansionary and contractionary fiscal policy.

A: Disclaimer: “Since you have asked multiple questions, we will solve the first question for you. If…

Q: Is it possible for a country to have a headline fiscal deficit and a primary fiscal surplus? Explain…

A: In an economy, headline fiscal deficit is the government over expenditure when receipts are less…

Q: (i) Explain the difference between the headline fiscal deficit and the primary fiscal deficit. Which…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Discuss Expansionary Fiscal Policy. Who is responsible for implementing fiscal policy? What may be…

A: Policies are created by the government in order to keep the economy on track and ensure economic…

Q: Explain each of the tools that exist in expansionary fiscal policy and contractionary fiscal policy.

A: Fiscal policy is the use of government spending and taxation to adjust the economy. It is a method…

Q: Explain how expansionary fiscal policy works in an economy

A: The fiscal policy is the use of government revenue (taxes or tax cut) and the government…

Q: Explain the objectives of  the fiscal policy.

A: In an economy, fiscal policy refers to the government action and it's intervention in the market by…

Q: In 2016, the policy makers of the of Eastlandia projected the debt-GDP ratio and the ratio of the…

A: Given: Real GDP is currently = $1,000 billion per year Real GDP is expected to grow at = 3% per year…

Q: Define the term fiscal policies and explain the government's government role in developing fiscal…

A: Fiscal policy is defined as the decision taken by the government to control the level of its…

Q: Describe the roles of government bodies that determine fiscal policy. Explain fiscal policies’…

A: The role of government bodies that determine fiscal policy are as follows: The government fiscal…

Q: How would a tax cut impact the National Budget and the National Debt? What are the pros and cons of…

A: national Budget: The financial plan or statements of government spending for a year is called the…

Q: Discuss the relationship between revenue deficit and fiscal deficit

A: We know that the budgetary deficit is of three types which are revenue deficit, fiscal deficit and…

Q: What is the relationship between the government deficit and debt? Why is it essential that…

A: The term government deficit refers to the percentage of a fiscal year's expenditures that exceed…

Q: Explain the 3 types of lag we should be concerned about when implementing fiscal policy?

A: When a policy is implemented there are certain lags due to the difference in the period when the…

Q: If fiscal budgets don’t need to balance, what should we be trying to balance in an economy? Explain…

A: Since you have asked multiple questions we will answer the first three questions for you. Fiscal…

Q: Explain the difference between the headline fiscal deficit and the primary fiscal deficit. Which one…

A: Headline fiscal deficit Vs the primary fiscal deficit 1. The primary deficit is the amount of…

Q: What issue or problem in the economy would be fixed with expansionary fiscal policy? Contractionary…

A: Expansionary-Fiscal policies are targeted towards increasing the consumption in the…

Q: Explain how a fiscal policy can be used to fight inflation and unemployment in an economy

A: A fiscal policy refers to one in which the state uses taxation, spending, and borrowing as…

Q: Define fiscal policy and explain the role of income taxes and government spending as fiscal policy…

A: Meaning of Fiscal Policy: The term fiscal policy refers to the situation under which the…

Q: 4) What are direct expenditure offsets and how do they influence the effects of fiscal policy?

A: Direct expenditure offsets, also called crowding-out effects, talk over with the effect of elevated…

Q: You should discuss the Fiscal policy of Demand Side and Market-oriented and Interventionist policies…

A: Interventions: This term refers to the government mechanism that aids in the understanding of market…